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Squilliam said:

As NJ5 said, the sales of the first parties aren't enough to justify the number of first party studios. The one thing I absolutely know will kill SCE dead is their large first party studio portfolio and stalling console sales.

 

 

Eh, even with the current install base, the only SCE published games that may have not made a profit are Lair and possibly Folklore, and neither of those are first party.  They're not even second party, as neither Factor 5 or Game Republic are tied exclusively to Sony.  They did cost SCE money, though (or at least Lair did).

Everything else* should've made a profit by this point, if not a nice profit, like Uncharted.

Of course, there's also current development expenses to think about, for games like Killzone 2.  And there's Home, on which they may never make back the initial R&D.

 

*Not including games released in the last month or so.  LBP is probably already in the black, and R2, Socom, etc. are well on their way to breaking even.